THE DEVELOPMENT OF PUBLIC BUDGETING 

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INTRODUCTION

A budget is one of the useful tools for monitoring the implementation of a correctly costed operational plan of an entity. Historically, budgets emerged out of a need to control and monitor the projected income and the utilisation of funds by entities.
In line with the evolution of societies, budgeting processes underwent a number of changes both in terms of objectives and formats(Rubin IS,1990:14). Budgeting as it is applied today is a product of this evolution. This chapter explains a public budget; its purpose; variables that impact on an effective public budgeting. Furthermore, it provides the characteristics of public budgeting; public budgeting as a means to an end; the South African context of public budgeting. It explains the models and methods of budgeting that have evolved over time. It elaborates on the various elements of these methods and models. Lastly, it briefly explains the development
of budgeting in South Africa.

WHAT IS A PUBLIC BUDGET?

A public budget is a document indicating how a public entity spends the financial resources in order to realise specific public goals (Gildenhuys JSH, 1997:393). It is a compilation of the financial needs for the achievement of the objectives of an entity. ‘It is a plan of activity expressed in financial terms’(Rose A & Lawton A, 1999:169). It becomes a legal financial plan after it has been approved through the legislative process. The Chartered Institute of Public Finance and Accountancy(CIPFA,1996:249) also defines public budget as:
“a plan quantified in monetary terms prepared and approved prior to a defined period of time, usually showing planned income to be generated and/or expenditure to be incurred during that period and the capital to be employed to attain a given objective”.
For a public budget to exist, the budgeting process by government needs to take place. Its existence is meant to ensure the effecting of the entity’s operational plans. In a report compiled by Beardon and Yawson (2000:1) presented in a workshop in Ghana they explain that:
“public budget has a direct impact on the wellbeing and quality of life of all Ghanaian citizens and commitments to human rights and poverty alleviation can be tracked through the analysis of the budget and monitoring its implementation”.
The next section will explain in more detail the purpose of public budgeting.

PURPOSE OF PUBLIC BUDGETING

Public budgeting is a process leading to the production of a public budget. It is guided by the government’s priorities in the delivery of services to the public. Gildenhuys (1997:417) states that:
“Budgets were developed as instruments (i) for the compilation of executable programmes, (ii) to serve as meaningful documents through which programmes may be approved by the legislative authority and (iii) to serve as instruments of control of the execution of approved programmes by the administrative authority and for the revision of programmes”.

1. GENERAL INTRODUCTION 
1.1 Introduction
1.2 Background to the study
1.3 Stimulus for research
1.4 Research problems
1.5 Research questions
1.6 Study objective
1.7 Scope of the research
1.8 Methodology
1.9 Reference techniques
1.10 Key concepts
1.11 Division of chapters
1.12 Conclusion
2 THE DEVELOPMENT OF PUBLIC BUDGETING 
2.1 Introduction
2.2 What is a public budget?
2.3 Purpose of public budgeting
2.4 Variables impacting on effective public budgeting
2.5 Characteristics of public budgeting
2.6 Public budgeting as a means to an end
2.7 Public budgeting in the South African context
2.8 Formats of budgeting
2.8.1 Line item budgeting
2.8.2 Programme budgeting
2.8.3 Performance budgeting
2.9 Methods of budgeting
2.9.1 Zero based budgeting
2.9.2 Incremental budgeting
2.10 Conclusion
3. UNDERSTANDING THE CONCEPT OF GOVERNMENT
COMMUNICATION 
3.1 Introduction
3.2 Definition of communicatio
3.3 Government communication
3.3.1 An effective message
3.3.2 The receiver of the message(audience)
3.4 Budget implication in the context of communication
3.5 Functions of Government Communication an
Information System (GCIS)
3.6 Conclusion
4. BUDGETING, EXPENDITURE AND THE MONITORING
PROCESS WITHIN GCIS 
4.1 Introduction
4.2 GCIS resources when it commenced its operations
4.2.1 Staff establishment
4.2.2 Budget for the 1998/99 financial yea
4.3 Compilation of the budget
4.3.1 Issuing of budget compilation guidelines circul
For 1998/99
4.3.2 Submissions for the 1998/99 budget estimates
4.3.3 Motivations submitted by the various sub programmes
PFMA
4.5 Public Finance Management Act 1 of 1999
4.6 GCIS submissions for 1999/00 – 2001/02 budget
4.6.1 GCIS strategic planning process
4.6.2 Budget submission for 1999/2000 MTEF
4.6.3 Processing of departmental submissions
4.6.4 GCIS expenditure monitoring during period 1998/99-
2000/01
4.7 Conclusion
5. CONCLUSION AND RECOMMENDATIONS 
5.1 Introduction
5.2 GCIS budget preparations
5.3 Budget submissions
5.4 Management of the expenditure
5.5 Absorbing SACS resources to start a new entity
5.6 The mandate of the GCIS
5.7 Transformation of Government communication
5.8 Challenges to an effective communication budget
5.9 Conclusion
6. LIST OF REFERENCES

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BUDGET ALLOCATION AND EXPENDITURE PATTERNS OF GOVERNMENT WITH SPECIFIC REFERENCE TO GOVERNMENT COMMUNICATION AND INFORMATION SYSTEM (GCIS) FOR THE PERIOD 1998 – 2001